SHANGHAI, Aug. 22 (SMM)--According to a SMM survey of over 250 domestic downstream zinc plants, including galvanizing, die-casting zinc alloy, bronze, battery and zinc oxide producers, power restrictions during 2011 were not as severe as last year, so the impact on production was less than expected. Downstream plants felt only a modest impact, even during the summer high demand period for electricity.
Downstream plants were heavily impacted during 2010, especially galvanizing plants in north, east and south China. Last year, in order to meet energy savings and emission reduction targets from the 11th Five-Year Plan, severe power restrictions were implemented, especially during 2H 2010, causing operating rates at galvanizing plants in north China to fall sharply. At that time, galvanizing enterprises in east China were operating on 5-day-on-2-off or 4-day-on-3-off basis.
This year, enterprises were reporting less severe restrictions, and were generally operating on a 6-on-1-off or 5-on-2-off basis, and even though enterprises suspended production for one or two days, they could produce during evening hours.
The number of plants experiencing some form of restricted power supply has grown slightly since late July, but enterprises said power restrictions were not strictly enforced. Cuts in output at enterprises this year were more from lower orders than from power restrictions.